A trader works on the trading floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, August 23, 2024.
Bloomberg | Bloomberg |
Stock prices rose on Thursday as investors sought to recover from the previous session's declines. Wall Street also paid attention to earnings from Nvidia and Salesforce.
The S&P500 rose by 0.8% and the Nasdaq-Composite increased by 1.3%. The Dow Jones Industrial Average rose by 264 points or 0.7 percent.
NVIDIA was down 3% after releasing its latest results on Wednesday afternoon. The AI chipmaker beat expectations for revenue and profit in the second fiscal quarter and gave a rosy sales outlook for the current quarter.
NVIDIA
“Deaths, taxes and NVDA earnings beats are three things you can bank on. The problem is that the beat this time was much smaller than before. Even forward guidance was raised, but again not to the same extent as in previous quarters,” wrote Ryan Detrick, chief market strategist at the Carson Group.
“This is a great company with revenue still growing 122%, but it seems like the bar was set just a bit too high this earnings season,” Detrick added.
This decline was offset by an increase in Salesforce earlier in the day. Shares traded higher in the morning after the business software giant beat second-quarter estimates and raised its full-year earnings forecast, although the stock last traded 0.6% lower.
“It's actually incredibly positive and optimistic that Nvidia, the indicator for AI, has a trading day where the overall market, particularly technology and semiconductors, is down and the overall market, particularly technology and semiconductors, is up a lot on that day. That just speaks to the extension that we're seeing in this rally,” said Scott Ladner, chief investment officer at Horizon Investments.
The economic data released on Thursday supported the stock market. Weekly unemployment figures fell compared to the previous week, further easing recession fears. In addition, gross domestic product growth in the second quarter was revised upwards from an original 2.8% to 3%.
